Johannesburg - Ride hailing service Uber has reduced the rates on its UberX service as of Thursday April 7, but the move has infuriated many of its drivers.
Fares will be cut by up to 20 percent in Johannesburg, Cape Town and Durban, from their current levels of between R7.00 and R7.50.
Uber said in a statement that the move was intended to increase demand during the quieter winter months and that drivers would actually benefit from the move:
"During the winter months riders tend to venture out less and this can be tough for driver-partners as this time spent idle is time they're not earning. Over the years, we've learned that the single most effective way to help driver-partners get more trips is to cut prices for riders."
It's not hard to understand why drivers would take exception to earning less money per kilometre driven, though, and some, in Cape Town, have even gone on strike. According to Bloomberg, around 200 Uber drivers stopped working on Wednesday and marched to Uber's Cape Town head office.
However Uber said it will be putting minimum payment guarantees in place for drivers while they adjust to the new prices and also stated that if the amount that drivers make on the road isn't what the company expects, then it will reassess the price change.
Uber users have been celebrating the price cut, and took to Twitter to express gratitude.
Lower fares for Riders = More trips for Drivers! #DitchYourKeys and use @Uber_RSA! https://t.co/XiLwTxFG2u
— Jeannie D (@Jeannieous) April 6, 2016
Even though petrol just went up by almost R1 @Uber_RSA is cutting the cost of their UberX by up to 18% @5pm tonight! https://t.co/RsgjemyC7A
— D❗ (@darrynvdwalt) April 7, 2016
@Uber_RSA drops their prices by 20% just we're hit with petrol increase? Clever @Uber_RSA, very clever! https://t.co/Ek6caJhXwd #UberForLess
— Greglorious (@gregorwalker) April 7, 2016
While others expressed concern for the drivers:
How much do drivers earn? How do they feel? What are Ubers profit margins? I worry this is exploitative #UberForLess https://t.co/DIC114NBe2
— Imelda Snarkos (@thisisNomi) April 7, 2016
@Uber_RSA the average partner can't afford this, the environment is already saturated now this? #UberforLess
— #Tonight (@Perfect_Cookham) April 7, 2016
IOL